Circle firmly denies rumors suggesting it plans to apply for a US banking license

“We urge Congress to pass bipartisan payment stablecoin legislation now to champion American innovation, stability, and consumer safety.”

Circle, the issuer of the USDC stablecoin, has no plans to apply for a U.S. banking license, the firm’s Chief Strategy Officer Dante Disparte clarified on Wednesday.

Disparte’s comment on X (formerly Twitter) follows a report by Bloomberg, which stated that Circle was preparing to apply for a banking license in the wake of the administration’s actions.

"For the record, Circle has zero interest in becoming a bank or any other type of insured depository institution," Disparte said.

Instead, he said the firm is focused on aligning itself with future regulations on payment stablecoins. According to Disparte, Circle is prepared to register under a state or federal trust charter or operate through a non-bank license if required.

Disparte’s statement directly contradicts a report by Bloomberg earlier this week, which stated that Circle and Coinbase were preparing to apply for banking licenses.

The speculations stem from the fact that U.S. regulators have been showing more receptiveness toward crypto in recent times. For instance, the Federal Reserve recently rolled back previous guidance that limited traditional banks’ ability to interact with digital assets, including dollar-based tokens.

The reversal is being seen by many as a green light for broader crypto adoption. Commenting on the development, Jason Karsh, a business leader at Blocks, said the change was a "meaningful step."

"This is a small but meaningful step in the right direction. It will allow banks to provide crypto-related services and products to customers without needing special permission," Karsh added.

Disparte’s comments also come as the U.S. Congress continues to work on two key bills that could shape the future of stablecoin regulation in the country.

The first bill, the STABLE Act, recently cleared the House Financial Services Committee. The second, the GENIUS Act, is also progressing through the legislative pipeline. Both bills propose new standards for liquidity, reserves, and compliance with anti-money laundering rules.

Lawmakers hope the legislation will help maintain the global influence of the U.S. dollar by building trust around U.S.-based stablecoin issuers.